The international gold price reached a new record high on the 12th, driven by expectations of an interest rate cut by the Federal Reserve (FRB).

According to Bloomberg News, the international gold spot price reached $2,554.05 per ounce on this day, breaking the all-time high record. U.S. gold futures prices also rose by 1.5% from the previous day, closing at $2,580.60.

Experts are analyzing that, having secured the key psychological barrier of $2,500, gold is now advancing towards the $3,000 mark.

The U.S. market has been paying attention to a series of economic slowdown signals, with many predicting that the Federal Reserve will lower interest rates during the Federal Open Market Committee (FOMC) meeting on the 17th-18th.

Gold, a typical safe-haven asset, is generally regarded as a hedge against inflation. Hedging refers to the practice of reducing or eliminating the risks of price fluctuations in volatile assets. If U.S. interest rates are lowered, inflation risks tend to increase, which, in turn, boosts demand for gold as a safe-haven asset. Consequently, gold prices are showing an upward trend.

With the New York Stock Exchange and other stock markets experiencing volatility, many investors are turning to gold as a major investment vehicle. Traditionally, investors have preferred stocks, real estate, and cash investments, but now gold is emerging as a popular alternative investment product alongside mutual funds.

In addition to the major gold-consuming countries of China and India, Russia has also started accumulating gold reserves. Recently, U.S. individual investors have become increasingly active in investing in gold as well.

On the 11th, the U.S. Department of Labor announced that the Consumer Price Index (CPI) for August rose by 2.5% compared to the same month last year.

Reporter Jo Hwan-dong

<Hwandong Cho>